Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
EURO/DOLLAR: "As the last eleven weeks, we have completed the forecast test of $1.2885 strong long-term resistance for January 2004, and continue to forecast the subsequent decline to $1.0660 into July 2004, then volatile consolidation ($1.0660 - $1.2340) into year-end 2004."
DOLLAR/YEN: "The five months ago close below 115.30 yen increased bearish medium-term momentum, and long-term techs remain neutral/bearish. After the rally to the 113.55 yen March 2004 medium-term corrective objective, continue to forecast a decline to 96.10 yen strong long-term support, out to August 2004 from June 2004, in the still bearish long-term outlook into the third quarter of 2004."
STERLING/DOLLAR: "The monthly close back below $1.8555 eroded momentum back to neutral/bearish and yielded the $1.7590 April 2004 medium-term objective. Continue to forecast a decline to $1.6970 into July 2004, up from $1.6765, in bearish long-term outlook through mid-2004. Expect a subsequent volatile consolidation ($1.6970 - $1.8070) into the fourth quarter of 2004."
EURO/DOLLAR: "Testing major levels between $1.1852 and $1.1735 (55-week moving average), double top target reached- $1.1852 to $1.1760 with the downward sloping line from the 2003 highs at $1.1735 being the weakest of the three levels. We will go bearish euro/dollar on a weekly close below $1.1760 and target a move to $1.0760."
DOLLAR/SWISS FRANC: "Yet again major levels between $1.3025 and $1.3099 are under threat. A weekly close through these levels would lead us to establish a bullish view and target a move to $1.4275".